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The Government adopted the Memorandum on the Convergence Program of Romania for the period 2021 – 2024, which is to be sent to the European Commission for the coordination of economic and budgetary policies within the Union, as part of the European Semester. At the same time, the measures included in it respond to the country-specific recommendations for Romania.
The adopted program presents the trajectory and the necessary measures for consolidating public finances in a sustainable and balanced manner, which does not affect Romania’s ability to support the economy and promote investment, as a way to support sustainable economic growth. The Convergence Program is based on the provisions of the Fiscal-Budgetary Strategy and the forecast of the medium-term macroeconomic framework 2021-2024. According to estimates, the economic recovery will be complete this year, and the annual medium-term growth rate will approach 5%, supported by growing budgets for public investment. The level
Prepared by Stephan Haroutunian, Sebastian Hauptmeier and Steffen Osterloh
On 18 November 2020 the European Commission released its opinions on the draft budgetary plans of euro area governments for 2021. In contrast to previous years and in the context of the coronavirus (COVID-19) pandemic, this year’s European Commission assessment was of a qualitative nature and did not focus on numerical compliance with the fiscal rules. This was due to the activation of the general escape clause
[1] which allows Member States to deviate from the adjustment requirements of the Stability and Growth Pact in certain specific, defined situations, such as a severe economic downturn for the euro area or the Union as a whole. Instead the Commission’s assessment was based on the fiscal country-specific recommendations adopted by the Council on 20 July 2020 as well as its guidance issued in September in the form of letters sent to all Member States indicating that the general escape clause would re